Correlation Between Industrial and Dongrui Food
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By analyzing existing cross correlation between Industrial and Commercial and Dongrui Food Group, you can compare the effects of market volatilities on Industrial and Dongrui Food and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Industrial with a short position of Dongrui Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Dongrui Food.
Diversification Opportunities for Industrial and Dongrui Food
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Dongrui is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Dongrui Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongrui Food Group and Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Industrial and Commercial are associated (or correlated) with Dongrui Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongrui Food Group has no effect on the direction of Industrial i.e., Industrial and Dongrui Food go up and down completely randomly.
Pair Corralation between Industrial and Dongrui Food
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.47 times more return on investment than Dongrui Food. However, Industrial and Commercial is 2.14 times less risky than Dongrui Food. It trades about 0.09 of its potential returns per unit of risk. Dongrui Food Group is currently generating about -0.04 per unit of risk. If you would invest 399.00 in Industrial and Commercial on September 5, 2024 and sell it today you would earn a total of 222.00 from holding Industrial and Commercial or generate 55.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Dongrui Food Group
Performance |
| Timeline |
| Industrial and Commercial |
| Dongrui Food Group |
Industrial and Dongrui Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Dongrui Food
The main advantage of trading using opposite Industrial and Dongrui Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Dongrui Food can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dongrui Food will offset losses from the drop in Dongrui Food's long position.| Industrial vs. Sichuan Hebang Biotechnology | Industrial vs. Bloomage Biotechnology Corp | Industrial vs. Liaoning Chengda Biotechnology | Industrial vs. BCEG Environmental Remediation |
| Dongrui Food vs. Agricultural Bank of | Dongrui Food vs. Industrial and Commercial | Dongrui Food vs. Bank of China | Dongrui Food vs. China Construction Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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